✅Case Study - Apple as a TNC

Question 1

Where are Apple’s headquarters?

Answer 1

California

Question 2

When did Apple launch?

Answer 2

1976

Question 3

When did Apple first start seeing big growth?

Answer 3

2000 with mobile and WiFi devices

Question 4

Where does Apple stand in global IT company rankings?

Answer 4

2nd, behind Samsung

Question 5

Where does Apple stand in global mobile phone manufacturing rankings?

Answer 5

3rd

Question 6

Apple is the number one…

Answer 6

…global brand by value

Question 7

How much is Apple worth?

Answer 7

$145 billion

Question 8

How many full time retail employees does Apple have?

Answer 8

98,000

Question 9

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Answer 9

[del]

Question 10

What is Apples market predominantly aimed at?

Answer 10

Richer, developed countries

Question 11

What percentage of sales are in the USA?

Answer 11

44%

Question 12

Where has the most rapid growth been in recent years?

Answer 12

Asia Pacific region

Question 13

Where are most of Apple’s employees based?

Answer 13

In the developed world, mainly USA

Question 14

Where are its US offices located?

Answer 14

California

Question 15

Where are Apple’s European headquarters?

Answer 15

Cork, Ireland

Question 16

How many people are employed in Cork?

Answer 16

4000

Question 17

What is manufactured in Cork?

Answer 17

iMacs

Question 18

What services are based in Cork?

Answer 18

Customer support and online call centres

Question 19

Which company is the manufacture of iPhones, iPods and iPads outsourced to?

Answer 19

Foxconn

Question 20

Where is Foxconn city?

Answer 20

Shenzen, Guangdong Province, China

Question 21

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Answer 21

[del]

Question 22

How many retail stores does Apple have?

Answer 22

Approx 450

Question 23

Where are the retail stores located?

Answer 23

110 in Europe and Middle East
25 in China

Question 24

Why are Apple’s products made in China?

Answer 24

Low cost of production because of…

• Large source of skilled, hard working, low paid workers
• A number of companies competed for the Apple contract, forcing down costs
• Shenzen was the location of China’s first Special Economic Zone, attracting many foreign companies
• Not unionised
• Fewer regulations, causing poorer working conditions

Question 25

What is Foxconn city?

Answer 25

A business park with a number of factories belonging to different manufacturers of high tech products

Question 26

How many people are employed in Foxconn city?

Answer 26

40,000

Question 27

How do people live in Foxconn city?

Answer 27

It is self contained and high security, and most workers live on site where there are shops, dormitories and cafes

Question 28

What are wages like in Foxconn city?

Answer 28

$150-200 a month, above minimum wage and above average for China

Question 29

Why was Apple attracted to Ireland?

Answer 29

It has low corporation tax, 12.5%, second lowest in the EU

Question 30

How many jobs have been generated in Cork?

Answer 30

2500

Question 31

How has the company’s presence benefited Cork?

Answer 31

It has attracted other large firms to operate there too as well as a highly skilled workforce

Question 32

How has Apple negatively impacted Cork?

Answer 32

Much of the workforce are foreign EU nationals, and Apple was accused of not creating enough work for locals

Question 33

Why has Apple been criticised for tax practices?

Answer 33

It has used subsidiary firms in other countries to declare profits and pay lower tax rates

Question 34

How has Apple caused tension between the US and EU?

Answer 34

Both claimed that Apple owed then tax on their profits which exposed a flaw in globalisation

Question 35

What was reported about Apple’s Chinese factories in 2006?

Answer 35

That 200,000 workers were regularly working more than 60 hours a week for around $100 a month, half of which was taken up by living costs

Question 36

Why was Apple sued by Chinese workers in 2010?

Answer 36

Fifty workers were poisoned by a toxic chemical used to clean iPad screens, as adequate ventilation had not been installed to reduce costs

Question 37

How are children treated in Apple factories?

Answer 37

The same as adults, with same hours and working conditions but called ‘trainees’ or ‘interns’ to avoid prosecution

Question 38

How have suicides affected Apple’s reputation?

Answer 38

In 2009, a Foxconn worker committed suicide after coming under pressure following the disappearance of an iPhone 4 prototype. By the end of 2010, 14 suicides had occurred largely due to working conditions

Question 39

How has Apple responded to the issues in China?

Answer 39

It now has a Supplier Code of Conduct to audit its supplier factories regularly

Question 40

Which NGO has criticised Apple’s environmental practices?

Answer 40

Greenpeace

Question 41

What 4 environmental issues were Apple criticised on?

Answer 41

• Reliance on non-renewable resources to supply electricity
• Use of toxic chemicals in manufacturing
• Factories in China discharge pollutants into water supplies, threatening public health
• Lack of recyclability of many Apple products

Question 42

How has Apple changed its environmental practices?

Answer 42

It now uses 75% renewable energy from solar farms
It removed toxic chemicals from production
Promotes recycling of products